Sustainable Growth. Long-Term Success.

Sustainable
Growth.
Long-Term
Success.
Annual Report 2011
Dear Reader,
In our annual report we take stock of the past year and focus on the most important developments at the Dussmann Group. As in past years, we are happy to be able to report good
news. All company divisions have seen sustainable growth and achieved all of their targets.
Not only that: 2011 was the most successful financial year in the company’s history.
This makes us proud and inspires us to build on existing competitive advantages: a wide,
sustainably oriented service portfolio, an international presence, minimal dependence on
capital markets, innovative business operations and an image as an attractive employer.
These strengths enable us to look to the future with optimism and to meet the challenges of
continuous growth. We are confident that the loyalty of our clients and the dedication of our
employees will ensure the continuation of the Dussmann success story in 2012.
The Executive Board of the Dussmann Group
from l. to r. Axel Gränitz, Reiner Worbs, Dirk Brouwers (chairman), Jörg Braesecke,
Dr. Hans-Jürgen Meyer
3
The Most Successful Year in
the Company’s History
All Dussmann Group company divisions
reached their targets for 2011, continuing the
upwards trend which has remained unbroken
over past years. Sales, results and the
number of employees have all reached record
levels, the highest since the foundation of the
family enterprise in 1963.
Sales boosted by Organic Growth
The Dussmann Group ended 2011 with worldwide sales of 1,658 million Euros. This is an
increase of 91 million Euros or 5.8 percent.
Gains were achieved almost exclusively
through organic growth. The previous year
showed worldwide sales of 1,567 million
Euros.
The Dussmann Group’s consolidated group
sales rose from 1,312 million Euros in 2010 to
1,378 million Euros in 2011. This is an
increase of 66 million Euros or 5 percent.
Driving Sales: Dussmann Service and
Kursana
Worldwide sales of the company division
Dussmann Service rose by 4.9 percent or 60
million Euros to 1,288 million Euros in 2011.
In the previous year, total sales generated by
Dussmann Service were 1,228 million Euros.
Total sales at Kursana increased by 10.2
percent or 31 million Euros, from 304 million
Euros in 2010 to 335 million Euros in 2011.
Substantial Gains over Previous Year in
Germany and Abroad
In Germany, our core services of facility
management, which integrates all facility
services and catering, and of nursing and
care services for the elderly generated total
sales of 1,029 million Euros in 2011, an
increase of 7.7 or 74 million Euros. In 2010
the figure was 955 million Euros.
Total Sales and Consolidated Group Sales
2010
2011
Change
Mill. Euro
%
Mill. Euro
%
Mill. Euro
%
1,567
100
1,658
100
91
5.8
Germany
955
60.9
1,029
62.1
74
7.7
Abroad
612
39.1
629
37.9
17
2.8
1,228
78.4
1,288
77.7
60
4.9
Kursana
304
19.4
335
20.2
31
10.2
KulturKaufhaus
35
2.2
35
2.1
0
0.0
1,312
83.7
1,378
83.1
66
5.0
Dussmann Service
987
75.2
1,023
74.2
36
3.6
Kursana
290
22.1
319
23.2
29
10.0
KulturKaufhaus
35
2.7
35
2.6
0
0.0
Total Sales
Dussmann Service
Consolidated Group Sales *
EBITDA Consolidated
Group Sales
* without managed and intercompany sales
6.3
6.2
Record sales were
generated by the
Dussmann Group in 2011.
All company divisions
achieved their targets.
EBITDA (Earnings Before
Interests, Taxes, Depreciation and Amortization) on
consolidated group sales
for 2011 remained at the
level of the preceding year.
4
Success Factors: a Wide
Ranging Service Portfolio and
Independence from Capital
Markets
Total sales generated by the group’s international operations were 629 million Euros
showing an increase of 2.8 percent or 17
million Euros over the previous year’s sales of
612 million Euros.
Creating Jobs Across the World
The number of people employed by the
Dussmann Group including those in managed
operations rose from 56,377 in 2010 by
1,475 to 57,852 (average number over 2011).
The strength of our performance is underlined
by the best results in the company’s history.
The figures are also exceptional in that our
growth again outpaced that of the German
economy as a whole – a rate of three percent
in 2011. We attribute this success to our
most important competitive advantages: we
have a solid international foothold and a
broad range of services which have been
molded to clients’ wishes and market requirements. Our positive financial results and high
levels of self-delivery enable us to be largely
independent from capital markets.
Unaffected by Economic Fluctuations
Employees Worldwide
2008
Total
2009
Germany
In 2011, the Dussmann
Group continued to grow
despite challenges such
as shortage of skilled personnel, price increases on
energy and food and the
Euro and financial crises.
56,377
2007
28,286
29,566
46,000
29,907
48,000
52,706
25,099
27,607
50,000
51,136
26,481 24,655
52,000
53,749
25,900
27,849
54,000
57,852
26,470
56,000
2010
2011
Abroad
Our business continues to be independent
from the fluctuations in the economy due to
the diverse risk profile of the individual
company divisions, service types and client
sectors. Kursana too is largely independent
from macro-economic developments and
benefits from current demographic trends.
Growth Despite Challenges
We achieved our business targets despite a
global economy confronted with a broad
variety of challenges. These included a
growing shortage of skilled personnel in
Germany and in many other industrial countries too. Rising food and energy prices
constituted an additional challenge worldwide. Additional causes of the slowing
economy in the final quarter of 2011 were the
Euro and financial crises.
The after-effects of the crisis years 2008/2009
were still in evidence in facility management
over the past year. The increased pressure on
pricing in the business and industry sector
extended into 2011, concentrating focus on
service concepts which optimize costs and
utilize savings potential. The trend towards
consolidation on the fiercely competitive
facility management market continues.
Dussmann headquarters in Berlin
5
Significant Contract Gains in
All Service Divisions
A Record Number of New Contracts in
Germany
The company division Dussmann Service
enjoyed unprecedented success with a
portfolio of more than 70 individual services
which it provides to a growing number of
major companies. An innovative service
approach and sustainable operator concepts
contributed to a record number of new
contracts overtaking even the record set in
2010. Contracts with a total volume of 60
million Euros were won in German service
operations alone. Among them were security
and cleaning services to clients in the automotive industry and IT and a fire-fighting unit
and event security at a motor-racing track.
Catering services were affected by the trend
towards full-day schools in Germany and the
associated demand for school catering and
for catering to child-care facilities. Increasing
employment rates were reflected by increasing sales in staff catering operations.
Health care organizations continue to found
service companies for the provision of
non-medical services and the Dussmann
Group is a shareholder in two such projects
founded in 2011.
In Italy, Dussmann Service won several major
catering and hygiene contracts with hospitals.
Two integrated facility management contracts
were signed in the United Arab Emirates
where the Dussmann Group has become the
largest German employer.
Innovation: Tailor-Made
for Our Clients
Dussmann KulturKindergarten Facilities
Opened
Our KulturKindergarten facilities meet the
growing need for corporate child-care and
contribute to meeting the current social
challenge of balancing family and career.
In May and in Septem­ber 2011, the first
two Dussmann KulturKindergarten facilities
were opened in cooperation with the
UKB Accident Hospital in Berlin and with the
Lahn-Dill clinics in Wetzlar (Hesse). They are
exceptional for their long, flexible opening
times, their focus on arts and culture and a
bilingual approach.
Dussmann KulturKindergarten at the
UKB accident hospital in Berlin
Start-Up of Coffee Bar Concept with
Cooperation Partners
In a sales cooperation with coffee specialist
Dallmayr/Heimbs, Dussmann Service established the Allegretto coffee bar concept for
international markets. The first coffee bars
were opened last year in Romania and
Lithuania. Top quality coffee specialties,
combined with the advantages of Italian
coffee bar culture meet the need for a respite
from the hectic working day.
Modern Alarm Receiving Center for the
Highest Standards of Security
In 2011, the construction of an alarm receiving center (ARC) in accordance with DIN EN
50518, began in Gardelegen (Saxony-Anhalt)
and in April 2012, the center went into
operation. Dussmann Service is one of the
first service companies in Germany to operate such a facility. At the ARC, alerts are
received from security systems on sites
which are being monitored. Connection with
the ARC excludes specific liability risks for
our clients since assessors and courts of law
orient their decisions on the most recently
recognized standards of technology.
In 2011 the Dussmann
Group developed new and
innovative services for the
people it serves.
6
Consistent Focus on
Sector Requirements
Over the past year, we have consistently
focused on the individual service needs of
specific sectors. The requirements of health
care institutions and cultural organizations
were examined for example and our service
range for these sectors was adjusted accordingly.
Expanding Know-How for the Health Care
Sector
Italy is the Dussmann
Group’s largest market
outside Germany. We
employ around 11,000
people there and are one
of the largest service providers in the public and
health care sectors.
We have done several things to expand our
know-how in hygiene, laundry and surgical
sterilization services. In October 2011, the
Dussmann Group acquired 70 percent of
Steritalia SpA (Perugia). The Italian company
is a leading provider of surgical sterilization in
Italy and its product portfolio covers the
entire process chain for the provision of
sterile surgical instruments to hospitals. Our
mid-term objective is to transfer the newly
acquired knowledge to the countries where
Dussmann has operations starting with
Germany, Austria and Switzerland.
Hygiene know-how for the health care market
Integrated Facility Management for Resource
Efficiency
The challenges presented by rising energy
prices are felt especially keenly by our
industrial clients. We have recognized that
there is high demand for integrated facility
management concepts which ensure careful
use of resources and we have made corresponding investment in our industry services
division and acquired specifically skilled
personnel.
A Vote of Confidence From the Near East
A further highlight of 2011 was the consulting
contract with the Saudi Arabian catering
company, Hijaz in respect of catering services
in Mecca. We carried out a comprehensive
feasibility study of the organization, construction and operation of industrial catering
production operations to produce meals for
pilgrims. The objective was to develop a
concept covering the production of healthy
meals, the quality controls and the complex
logistics necessary to distribute and serve
meals.
Clean-Room Cleaning in Switzerland
The service portfolio of the Swiss cleaning
company, Abegglen Service AG which was
acquired on January 1, 2011 has been
extended to include special services such as
clean-room cleaning.
7
Continued Growth
at Kursana
Increase of Capacity to Meet Rising Demand
Kursana – the second largest company
division of the Dussmann Group – has established its position as the leading private
German provider of nursing and care to the
elderly. The growing number of people in
need of nursing and care led to increased
demand at our 116 facilities in 2011.
The number of facilities has also grown. There
were opening celebrations at three new
Domizil facilities: Schneeberg (Saxony),
Dachau (Bavaria) and Dreieich (Hesse) and a
sharp increase in occupancy at the eight
Kursana Villas acquired in autumn 2010.
Quality Management Ensures the
Maintenance of Excellent Care Standards
At Kursana, the focus of our activities is on
the quality of care and with it, the comfort of
residents. We have continued the quality
campaign initiated in previous years and
intensified efforts with internal audits by our
own quality management department and
certification of facilities by the certification
organization, TÜV Rhineland. Our success
vindicates this approach; following inspection
by the health insurances medical service
(MDK), the almost 90 Kursana facilities
inspected so far were awarded an average
rating of 1.2 (status: February 2012).
Personnel Development to Answer the Need
for Skilled Staff
Kursana’s expansion has resulted in the need
for further well-trained, motivated nursing
staff. We have reacted with intensive investment in the recruitment of new staff and in a
training campaign, increasing the number of
trainees in Germany to 415.
nursing and
medical care
MDK
rating
1.4
very good
treatment of
residents with
dementia
1.2
very good
social support
and daily
organization
1.1
very good
accommodation,
catering, house­keeping and
hygiene
1.1
very good
overall results
calculated
overall results
1.2
very good
Outstanding average ratings following MDK inspection of Kursana facilities (status: February 2012)
survey of
residents
1.1
very good
13 quality managers are
charged with monitoring
quality standards of care
at Kursana facilities and
with development of new
concepts for nursing and
care.
8
We are “The Company of
Opportunity”
Dussmann is investing in
initial and further training,
among other things, in
trainee programs and the
furtherance of older
employees.
Joint Efforts for Fair Pay
Dussmann Campus:
Investment in Further Training
We demonstrated our commitment to regionally adjusted, sector-specific, universally
applicable minimum wages over the past year
by pressing for fair wages in the service
sector. Our efforts were concentrated on
cooperation with various employer associations. Our membership of the DEHOGA (the
German hotel and restaurant association)
underlines our determination.
Strengthening the Attraction of our Employer
Brand
A project which involves the entire group is
the establishment of the employer brand
“The Company of Opportunity”. Our company
already offers excellent opportunities at every
career phase – from school leavers to skilled
staff to those embarking on a second career.
Employees with minimal qualifications receive
the opportunity to develop their knowledge
through training. In the face of the growing
shortage of skilled personnel, the promotion
of the loyalty of existing staff and the recruitment of new personnel is a top priority.
Dussmann Campus Zeuthen
In 2011, time and effort was invested in the
introduction of the software, SAP. The
Dussmann Group made further investment in
the company’s training center in Zeuthen, the
Dussmann Campus. Almost 1,400 employees
took part in central training courses there in
2011 and in de-centralized training on clients’
sites and in Kursana facilities. The successful
graduates of the master craftsman course in
commercial cleaning celebrated a premiere
as this was the first of its kind. Employees
from international subsidiaries will also be
trained according to the German qualification.
The refurbishment of the Dussmann Campus
will make it possible to carry out up to four
seminars each day in future. The scope of
further training will increase significantly.
9
Setting the Course for
Sustainability
The Dussmann Group has bundled the
activities which contribute to sustainability
and has appointed its first sustainability
board. The board’s task is to determine and
monitor the company’s sustainability projects.
Sustainability Report Documents Social
Responsibility
Our first sustainability report “Future in Our
Hands” documents how the Dussmann
Group makes social responsibility for employees and for society in general the basis of the
company’s business activities. Sustainability
is anchored in corporate principles and in the
Code of Conduct which was published in
2011 as mandatory guidelines for each and
every member of staff. While ensuring that
high standards of service are maintained, we
undertake to protect the environment and
enable our clients to improve their sustainability record too.
EcoSystem:
Labeling of Sustainable Dussmann Products
In 2012, the Dussmann Group will focus on
the development of further sustainable ser­vice
products for all of the service divisions.
Products which enable and promote sustainable operations will in future carry our own
sustainability label, Dussmann EcoSystem.
Vertical garden Symbolizes Sustainability
January 2012 saw the opening of the vertical
garden at Dussmann House in Berlin. It
symbolizes the Dussmann Group’s focus on
economic, ecological and social sustainability.
Over 6,000 tropical plants bloom and flourish
across 270 vertical square meters ending in a
16,200 liter water basin. In autumn, the
restaurant Ursprung will open at the foot of
the vertical garden offering sustainably
produced foods and beverages from regional
suppliers.
Consistent Social Commitment
The Code of Conduct contains guidelines
for the activities of our personnel
The Dussmann Group supported numerous
cultural and social institutions in 2011 including the State Opera Unter den Linden in
Berlin, the association “Innocence in Danger”,
the music high school Carl-Philipp-EmanuelBach in Berlin, the Bach archives in Leipzig
and the event “Young Euro Classic”. During
Advent, 46 children’s libraries were presented
to child-care facilities across Germany and in
other German-speaking countries. In addition,
the Dussmann Group sponsored exhibitions
of the Prussian Palaces and Gardens Foundation (SPSG) and the state museums in
Berlin.
We have our own concept
for sustainability: the
Dussmann EcoSystem.
10
Optimistic Outlook
for 2012
Realistic Objectives for Expansion
We continue to strive for robust, organic
growth. The numerous new contracts at the
end of 2011 and in the first quarter of this
year bear out our optimism that plans can be
made reality.
This year’s objectives are to create around
1,000 new jobs and to be a reliable, innovative partner for our clients across the world.
We will strengthen the cooperation amongst
international subsidiaries and between
service divisions and adjust our service
portfolio to the differing needs of the individual sectors.
Positive Trends in Core Markets
Dussmann is a leading
provider in two of the most
important growth markets:
facility manage­ment and
nursing and care.
Trends in the Dussmann Group’s core markets of facility management and care are
promising. There are opportunities for facility
management services worldwide. The
demand for residential care will continue to
grow and Kursana plans to open two further
facilities in the current year.
High demand for professional facility services
The demand for nursing and care will grow in 2012
Major Challenges Unchanged
We must assume that the challenges faced in
2011 will continue to play a role in 2012.
These include wage increases such as the
increase in minimum wages for cleaning
personnel, nursing staff and in security operations as well as price increases for foods and
energy.
11
Locations Across Germany
Never Far From Our Clients
Branch/Support Office
Dussmann Service Germany
D
Kursana Domizil
Nursing and Care
R
Kursana Residenz
Sheltered Accommodation and Care
V
Kursana Villa
Premium Accommodation and Care
D
Kursana Domizil
Under Construction
Kiel
Grimmen D
D
Rostock
Wedel
R
R D
Stavenhagen D
Hamburg
D D
Torgelow
Neubrandenburg
Schwerin
D Oststeinbek
Reinbek V
D Aurich
Greifswald
D Stralendorf
D D
Rastow
D Buchholz
Schwedt/Oder D
Bremen
D
Neuruppin
Berlin
Celle D
D Lingen
D Nienhagen
Wolfsburg
D Seelze
Osnabrück
Hannover
Barsinghausen D
Potsdam D
D
D
D
Frankfurt/Oder
Braunschweig
V
Eisenhüttenstadt D
Magdeburg
Guben D
R Bad Pyrmont
D Wittenberg
D Gütersloh
Bad Lauterberg
D
Duisburg/
Oberhausen
Göttingen
Dortmund
Essen
Halle
D Markkleeberg
Dresden
Grevenbroich D
Aachen
Bad Muskau D
Weißwasser D
Leipzig
Kassel
Düsseldorf
Köln
D
Merseburg D
R Krefeld
Neuss
Cottbus
Forst D D
D Wolfen
Bitterfeld D
R Refrath
Erfurt
D Weimar
Siegen
Gera
D
D
D Meerane
Chemnitz
D
D Zwickau
Bonn V
D
Reichenbach
Gießen
D Schneeberg
Künzell D
Koblenz
Oberursel
Königstein V V
D Bruchköbel
D Kriftel
Wiesbaden V
D Mömbris
Frankfurt am Main
V
Griesheim D
Trier
Alzey D
D
D
Dreieich
D Hösbach
Seligenstadt
Darmstadt
D Otzberg
Weiden D
Herzogenaurach D
Mannheim
Fürth R
D Kaiserslautern
Nürnberg
Saarbrücken
D Lappersdorf
Heilbronn
Regensburg
Ettlingen
D Rastatt
D Gaggenau
Stuttgart
D Vaihingen
D Donzdorf
Leinfelden-Echterdingen D
D Nürtingen
D Friesenheim
Reutlingen
R
Aalen D
Ulm
D Pilsting
Dingolfing
Schrobenhausen D
Diedorf D
D Au
D Ergolding
Augsburg
D Bobingen
D Dachau
V
München
D Ampfing
Burgkirchen
D Pullach
Freiburg
Rosenheim
Bad Tölz
R Prien
Löbau
Publisher’s Details
Sustainable Growth.
Long-Term Success.
Annual Report 2011
Publisher
Dussmann Group
Friedrichstraße 90
10117 Berlin
Telephone: + 49 (0)30/20 25-0
Email: hotline @ dussmann.de
Responsible According to German Media Legislation
Jan Flaskamp
Editorial Responsibility
Dussmann Group
Editorial deadline: 27.4.2012
Design and Consulting
Nur Baute GmbH Berlin
Photography
Peter Eichler, Leipzig
Printing
Print Produktion Laube GmbH Berlin